Regulatory Alerts2022-05-17
Report for the Minister of Finance on the operation of the prudential regime for Non-bank Deposit Takers
The Reserve Bank of New Zealand issued this report to review the prudential regime for Non-bank Deposit Takers and recommend legislative changes to enhance financial system stability. The Bank proposes decoupling the NBDT definition from securities law, retaining current prudential objectives, and shifting prudential standard-setting to Bank-issued standards for greater flexibility. Additionally, the report recommends improving the existing trustee-based supervisory model through legislative amendments and guidance, while retaining direct Bank supervision as a fallback option if current measures prove insufficient.
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